Lab-Grown Diamonds Overtake Natural Stones in Surat and Mumbai Export Market 

Surat | Gujarat — In a historic transformation for India’s diamond industry, lab-grown diamonds have officially overtaken natural diamonds in export volumes for the first time, signaling a dramatic shift in the global jewellery market and redefining the future of Surat’s world-famous diamond sector.

For decades, Surat and Mumbai built their global dominance on natural diamonds, with Surat alone cutting and polishing nearly 90 percent of the world’s diamonds. But amid a prolonged slowdown in the natural diamond trade, lab-grown diamonds have emerged as the industry’s biggest lifeline — sustaining factories, protecting lakhs of jobs and now surpassing natural stones in exports.

According to official export statistics for 2025-26, exports of polished lab-grown diamonds touched a record 18.80 lakh carats, overtaking polished natural diamond exports, which stood at 16 lakh carats. Industry experts say this is the first time in history that lab-grown diamond exports have exceeded natural diamond exports in volume.

The achievement marks an extraordinary rise for an industry that barely existed a decade ago. In 2015-16, India exported only around 10,000 carats of polished lab-grown diamonds. Ten years later, exports have multiplied exponentially, turning Surat into the country’s largest hub for lab-grown diamond production and processing.

“Lab-grown diamonds are no longer an alternative product — they are becoming the mainstream future of the diamond business,” said Dinesh Navadiya. “Surat has emerged as India’s largest production centre for lab-grown diamonds. Hundreds of advanced CVD and HPHT units are now operating in the city, creating employment and attracting global demand.”

Industry insiders say changing consumer preferences in markets such as the United States, Europe and the Middle East have accelerated the growth of lab-grown jewellery. Younger buyers are increasingly choosing lab-grown diamonds because they are 60 to 80 percent cheaper than natural diamonds, environmentally sustainable and available in larger, higher-quality sizes at affordable prices.

The lab-grown sector has also become a crucial economic buffer for Surat during the ongoing recession in the natural diamond trade. Falling demand from key global markets like the US and China had pushed thousands of diamond factories into crisis over the past three years. However, the rapid rise of lab-grown diamonds helped many units survive while continuing to provide employment to thousands of gemologists, polishers and traders.

Surat’s growing network of Chemical Vapour Deposition (CVD) reactor units and imports of HPHT rough diamonds from China have further strengthened the city’s dominance in the sector. Most imported rough stones are processed and polished in Surat before being exported globally as finished jewellery and polished gems.

Industry leaders believe the growth story is far from over. With affordability, sustainability and technology driving global demand, exports of lab-grown diamonds are expected to climb sharply in the coming years.

Diamond Export Snapshot (2025-26)

Polished Lab-Grown Diamonds: 18.80 lakh carats

Polished Natural Diamonds: 16.00 lakh carats

Price Difference: Lab-grown diamonds are 60-80% cheaper

Key Markets: US, Europe, Middle East

Growth Driver: Eco-friendly and affordable luxury jewellery